Nor'West News: August 16, 2016
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NOR’WEST NEWS Tuesday <strong>August</strong> <strong>16</strong> 20<strong>16</strong> 27<br />
EQC UPDATE KEEPING YOU INFORMED | AUGUST 20<strong>16</strong><br />
The changing shape of EQC<br />
The Earthquake Commission’s work in<br />
Canterbury is entering a new phase as<br />
it settles the final earthquake claims for<br />
the 2010 and 2011 earthquakes, says<br />
EQC Chief Executive, Ian Simpson.<br />
“Over the past few months we’ve been<br />
looking closely at what remains to be<br />
done and we will be carefully matching<br />
the workforce to the work that still needs<br />
completing.<br />
As part of this, EQC has developed a<br />
proposal on how EQC will be organised in<br />
2017 to implement its work in Canterbury,<br />
while continuing its national work.”<br />
EQC began consultation with its staff<br />
this week on a proposed smaller structure<br />
for 2017.<br />
“As we make changes over the next few<br />
months, one thing isn’t changing: we will<br />
retain a presence in Canterbury until we<br />
have met our obligations to our customers.<br />
The proposal is for an organisation with<br />
383 positions from January 2017,” Mr<br />
Simpson said.<br />
The proposals for the new structure impact<br />
the 868 EQC people on fixed term<br />
employment agreements to December<br />
20<strong>16</strong> or on contracts for service.<br />
Mr Simpson says the reduction in staff<br />
numbers had been signalled to staff earlier<br />
this year, with more detail given<br />
at EQC staff update sessions in July.<br />
He was grateful for the professionalism<br />
of EQC staff; continuing to achieve key<br />
milestones for Canterbury customers<br />
during a time of change and personal<br />
challenge.<br />
By the end of the year, EQC’s target<br />
is to have:<br />
• completed all of the approximately<br />
67,900 managed home repairs.<br />
• settled all of the approximately 99,000<br />
residential building claims scheduled for<br />
first-time cash settlements.<br />
• settled all of the more than 187,000<br />
contents claims.<br />
• settled green zone land claims for about<br />
73,000 properties.<br />
• resolved 75% of the remedial requests<br />
we had on our books as at 30 June 20<strong>16</strong><br />
• cash settled 90% of the 3,118 drainage<br />
claims we had received by 30 June<br />
20<strong>16</strong>.<br />
• cash settled the 13,985 damage claims<br />
received following the series of quakes<br />
in Canterbury between February and<br />
June 20<strong>16</strong>.<br />
Mr Simpson says that what remains to be<br />
done in 2017,is to continue resolving<br />
remedial requests on properties where<br />
EQC has managed a repair, and continue<br />
resolving drainage enquiries.<br />
“The level of work left is of a much smaller<br />
scale than the Canterbury Home Repair<br />
Programme was designed for. We need<br />
a smaller, fit-for-purpose approach to finish<br />
the work,” Mr Simpson said.<br />
“By 2017 we will have a new approach for<br />
handling the remaining work, including<br />
remedial requests. We’re working on the<br />
details of this now, including talking to<br />
Fletcher EQR. We hope we will have a<br />
clearer picture around September,”<br />
Mr Simpson said.<br />
As at 31 July 20<strong>16</strong>:<br />
• there were 238 substantive repairs left,<br />
which we aim to have resolved by the<br />
end of the year.<br />
• there were 335 secondary repairs (such<br />
as garages and chimneys) to do.<br />
There is also a range of administrative and<br />
financial tasks to be completed.<br />
“I know it has not been an easy journey for<br />
some EQC Canterbury customers. We<br />
didn’t get everything right. I’m the first to<br />
admit that. But EQC has worked hard to<br />
learn from its mistakes and improve how<br />
we work not just for Canterbury, but for all<br />
New Zealand,” Mr Simpson said.<br />
Outside of Canterbury, EQC needs to be<br />
ready to respond to any future event and<br />
continues negotiating and managing<br />
natural disaster reinsurance for the country.<br />
EQC will also continue settling the 5,000<br />
to 8,000 natural disaster claims it receives<br />
on average every year, funding research to<br />
a tune of about $<strong>16</strong> million annually, and<br />
educating the public about natural hazards<br />
and how to mitigate these.<br />
Remedial requests<br />
EQC has streamlined its process for handling new<br />
remedial requests from customers received from<br />
1 <strong>August</strong>, 20<strong>16</strong>.<br />
EQC Chief Executive, Ian Simpson, says the new process<br />
aims for faster resolution with customers having the<br />
opportunity to provide information upfront and state their<br />
preference for a cash settlement or a managed repair<br />
where remedial work is required.<br />
The changes have been introduced after positive<br />
customer feedback on the process used to manage claims<br />
from the February 20<strong>16</strong> earthquake, where customers had<br />
the opportunity to submit more information upfront to<br />
enable quicker turnaround.<br />
Many customers going through the February 20<strong>16</strong> claims<br />
management process are positive or very positive about<br />
their experience. EQC is now using this approach for new<br />
remedial requests, and customers will be asked to send in<br />
information such as photographs and builders’ quotes.<br />
Although cash settlement will provide a quicker<br />
resolution, it may not suit everyone, Mr Simpson says.<br />
“So if a customer prefers that a contractor do the work,<br />
then EQC will arrange for that to happen. But EQC’s<br />
Community Contact Team and independent customer<br />
advocate groups will be available to support any cashsettled<br />
customers who aren’t confident in sourcing their<br />
own contractors,” he says.<br />
Of the 5,720 open remedial requests, EQC has identified<br />
approximately 1,500 properties that cannot be resolved<br />
through a managed repair before 2017. The new process,<br />
while largely designed for new remedial requests, will be<br />
available to these customers and EQC will be making<br />
contact with them from late <strong>August</strong> to ask if they prefer a<br />
cash settlement or managed repair during 2017.<br />
Customers wanting to discuss remedial requests can<br />
contact EQC by phone 0800 DAMAGE (326 243) or email<br />
info@eqc.govt.nz<br />
Drainage<br />
As at June 30 20<strong>16</strong>, EQC had 3,118 drainage damage<br />
enquiries to be resolved. To ensure timely settlement of<br />
these claims, EQC has introduced a panel of licenced<br />
drain layers to identify earthquake damage.<br />
On settlement, customers get a detailed assessment of<br />
the earthquake damage, a documented repair strategy,<br />
and the costing for the repair. EQC expects to resolve<br />
90% of the drainage claims, lodged by 30 June, in 20<strong>16</strong>.<br />
EQC is concentrating on resolving as many drainage<br />
claims as possible that were received by June, this year.<br />
The claims received after that date will be resolved<br />
next year.<br />
CONTACT EQC AT 0800 DAMAGE (0800 326 243) OR VISIT WWW.EQC.GOVT.NZ